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The Lawyer-Client Relationship

The lawyer-client relationship can vary considerably, depending upon the business and needs of the client. It can also depend upon the client’s reasons for retaining the lawyer. In the case of general corporate clients, the work may include a full range of services such as contracts, real estate, human resources, marketing, and transactional matters involving acquisitions, divestitures and financings. Some clients may engage a lawyer to handle a specific transaction, such as an acquisition, divestiture or specific securities law matter, while others may engage a lawyer as general counsel, contacting the lawyer on a regular basis with questions or issues that arise in the course of doing business. Often the retention of a lawyer may relate to a specific matter but later be expanded to another or to a full range of matters.

Often the corporate lawyer can provide business advice and insight as well as strictly legal advice, depending upon the nature of the client, the lawyer’s relationship to the client, and the lawyer’s specific knowledge of the non-legal aspects of a business matter. The ability to analyze business and issues in more than only a legal sense adds considerably to a lawyer’s value to the client. An example would be in connection with a financing. The lawyer may have knowledge of comparable financing arrangements and terms if particularly experienced in financing matters, including finding or arranging financing. The lawyer may also provide access to new customers, regulatory authorities, and others, and identify and provide information on and evaluation of other professional advisors. In addition, the lawyer can provide the perspective of a third party not involved directly in a matter and thus provide objectivity. The ability to provide business advice of a general or specific nature makes the lawyer more effective as an advisor to the client and in representation of the client.

Providing outstanding service in a cost-efficient manner is key to an excellent lawyer-client relationship. Excellent service requires first that the lawyer respond promptly to the client. This means responding quickly to communications, particularly telephone calls. Second, client risks and issues should be identified and resolved in the most favorable manner possible under the circumstances. Third, documentation should reflect the terms of a matter properly and protect the interests of the client. Cost-efficiency in providing services requires that a lawyer evaluate the business cost to the client compared to the cost of the legal services. For example, expenditure by the client of $25,000 in legal fees to solve what may be a $10,000 legal problem does not make sense, unless there is a broader non-financial issue involved. Part of excellent service it to be in contact with the client on a regular basis to discuss business questions and to be current on business development. This is important because the client may not be aware of actual or potential legal issues, which may arise as a result of actions taken or omitted.

The value added by the lawyer’s work should be at least equivalent to and preferably substantially exceed the cost of the lawyer’s services. If not, the client will not believe the lawyer is making a positive contribution and that the lawyer’s work contributes added value. It is important that the client believes the lawyer is helping the client advance the interests of its business. Quality of legal services, both in technical and responsive respects, is a critical consideration. It is essential to instill confidence in terms of advice, insight, technical competence, responsiveness and reliability. It is important that the client feels the lawyer shares the client’s interests and that the lawyer is dedicated to protecting and advancing those interests. It is also desirable that lawyer project as a concerned human being with a genuine interest in the individuals acting on behalf of the client.

The client’s confidence in the lawyer’s integrity is fundamental to developing and maintaining a lawyer-client relationship. Generally lack of confidence will result eventually in negative consequences. It is important that the client and lawyer have a full disclosure relationship, since the lawyer cannot handle a problem or issue properly without knowing all relevant information.

The client’s success will often contribute to the lawyer’s professional success and practice development. By focusing on business issues, which affect the client, and by bringing business developments relating to the client’s business to the client’s attention, the lawyer will often foster potential for additional legal work from the client. The lawyer may also bring business opportunities or assist the client in developing or taking advantage of existing business opportunities or situations. For example, the lawyer may help the client find or establish a new customer opportunity, find a supplier on favorable terms, or find financing for the client through other clients or other relationships of the lawyer.

The nature of legal services rendered to a client depends considerably upon the client’s business. It can also depend upon the reasons for the lawyer’s retention by the client. In the case of general corporate clients, the work includes a full range of services such as contracts, real estate, human resources, marketing, and transactional matters involving acquisitions, divestitures and financings. Some clients may engage the lawyer to handle a specific transaction.